According to Zhitong Finance APP, Morgan Stanley (MS.US) announced on Thursday that it will withdraw from the Net Zero Banking Alliance (NZBA), which aims to achieve net zero carbon emissions. Prior to this, Goldman Sachs (GS.US), Wells Fargo & Co (WFC.US), Citigroup (C.US), and Bank of America (BAC.US) also announced their withdrawal.

Wall Street Banks have come under attack from Republican politicians in the USA, who have vehemently criticized the actions taken by Wall Street Banks regarding climate change, aiming to combat so-called "woke" capitalism. In November last year, Texas took the lead in suing Blackrock (BLK.US), Vanguard Group (AVD.US), and State Street (STT.US), accusing them of using climate-friendly investment strategies to suppress Coal supply, in violation of antitrust laws.

Texas Attorney General Ken Paxton claimed that the three major Fund management companies utilized their market influence and membership in climate organizations to pressure Coal producers to cut production. The lawsuit states that electrical shortages have caused residents in Texas and other states to pay higher electricity bills.

The NZBA coordinates its work with the Glasgow Financial Alliance for Net Zero (GFANZ) supported by the United Nations. GFANZ stated earlier this week that it is undergoing reforms to "double down on mobilizing private capital" and support the Energy transition.

Goldman Sachs and Banks such as Wells Fargo & Co stated that they remain committed to achieving their net-zero emissions targets and helping clients reduce their carbon footprint.

Reports indicate that, should Trump be re-elected as President of the USA, large financial institutions in the USA are continuously feeling pressure from the Republican Party, forcing them to distance themselves from industry organizations that support carbon emission reductions.